That's about $55 billion in cash, meaning that a deal — if agreed
— would be the biggest of the year so far.

Monsanto shares rose about 2.5%, to $103.65, as of 12:35 p.m. ET
Thursday — still well below Bayer's new offer.

Monsanto in May
rejected Bayer's first offer, saying "the current proposal
significantly undervalues our company and also does not
adequately address or provide reassurance for some of the
potential financing and regulatory execution risks related to the
acquisition."

Bayer says it has since held private talks with the company and
has "comprehensively addressed Monsanto's questions concerning
financing and regulatory matters and is prepared to make certain
commitments to regulators."

It said it's willing to pay Monsanto $1.5 billion if the deal is
blocked on antitrust grounds.

Importantly, Bayer says it submitted its new offer verbally on
July 1 and formally on July 9 — five days before Thursday's
public announcement.

In other words, Bayer just spent weeks in private talks with
Monsanto only to see that company try to make an acquisition of
its own. So now it's turning to the shareholders.

"We are convinced that this transaction is the best opportunity
available to provide Monsanto shareholders with highly
attractive, immediate and certain value," Bayer CEO Werner
Baumann said in the statement. "Bayer is fully committed to
pursuing this transaction."

After Bayer made its first offer, Baumann said, "we fully expect
a positive answer of the Monsanto board of directors" — which is
not something he reiterated this time.